Need for a Real Estate Regulator

India has come of age and fast gearing up as the next hub for industries and service sectors especially IT, ITes and BPO. The contribution of these industries and their bullishness to establish a presence in the country has given a strong push to real estate sector.

With property developers fast turning to capital markets and increasing FDI, Indian property market has changed dramatically. Yet problems such as poor infrastructure facilities, lack of transparency, arrival of amateur builders, haphazard development continue to plague the industry. The ultimate solution for most of these problems lies in having a regulator for the real estate with capacity to penalize errant developers and property agents.

The move will help in bringing greater transparency in the unorganized property market of India. Investors form a critical part of the real estate fraternity. Appointing a managing head for real estate will open ways for investors who though want property investment in India but resist the temptation considering the fragmented nature of the market.

Appointing a real estate regulator will result into maximum benefits for retail industry in India. There is a dire need to transform unorganized traditional retailing into modern organized retailing. It will further strengthen the customer base and attract interests from global retail players.

Rakesh Malhotra, an associated editor of Indian Real Estate Forum, which is a platform to exchange ideas with real estate community on various issues related to property investments, property for NRI and real estate updates in India.